Abstract

The world is becoming flatter through global integration and ‘smarter’ through interconnected communication and com-merce. For oil and gas organizations this means finding ways to launch business ventures in new regions. While Afghanistan is a high risk zone with negative trade balance, weak currency & infrastructure, extreme security conditions and cultural di-versity, it is estimated to possess substantial reserves of oil and gas that may shake up Central Asia’s increasingly competitive energy contest.

The proposed framework is a step by step model which by using core competency check, decision metrics, balance scorecard models, cost equations, intelligent forecasting tools and several critical domains of knowledge management, makes sure that the organization takes right decisions regarding the manner of activities strategizing and execution, in mesh of diversified challenges. The SCOR model is integrated with processes that identify potential risk elements throughout the supply chain in Afghanistan, taken as base cases, and defines metrics to assess the potential impact of these risk elements. The framework thus developed has been used to build powerful simulation models that integrate discrete event simulation and spreadsheets. The simulation models are hierarchical and use sub models that capture activities specific to supply chains and breaks it down into further sub levels to evaluate the supply chain performance.

The model enables full leverage of capital investment, creation of a supply chain road map, alignment of business functions, reducing complexities in distribution network, and an average of two to six times return on investment. By maximizing predictability and controlling risk through excellence and efficiency in the upstream supply chain for Oil & Gas, this model provides an excellent tool for intelligent integrated management for any region that has similar mesh of chal-lenges as faced in Afghanistan.

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